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What the Economic Stimulus Package Means for You (in Plain English!)

So we’ve been hearing about the $787.2 BILLION Economic Stimulus Package since January. (And I hope when you read “$787.2 BILLION” you’re scratching your chin and looking evil, as I am.) It all sounds grand and spectacular, and like it means a lot of wonderful things. What those “wonderful things” are, I wasn’t exactly sure of, so I asked my friend Wray Rives, from Outright.com, who gave me the Top 10 reasons he’s psyched for the Stimulus Package.

I can't even handle all the money I saved!

So, in his words, here’s why he’s psyched about the Economic Stimulus Package. And why you should be, too.

1. I’ll Get the Work Pay Tax Credit Everyone who doesn’t earn “too much” money (too much = $75,000) gets a $400 tax credit next year. If you have any job this year, you already saw your pay increase by about $33 per month. You did notice that increase, right? 2. I Qualify for the American Opportunity Tax Credit If you’re paying college tuition, you get a $2,500 tax credit. And if you’re a recent college grad, until you make $80,000 a year, you get this credit. Pretty rad. To read the rules and see if you qualify, click here.

3. I Qualify for Unemployment Benefits If you got laid off in 2009, under the new act, the first $2,400 of unemployment pay you get is un-taxed. (Before, every dollar of unemployment was taxed.)

4. And the COBRA Subsidy Because I was laid off between September of 2008 and December of 2009, the government will pay 65% of my health insurance premium (through a tax credit) for nine months.

5. I Can Get Energy Incentives If I make “energy efficient” improvements to my home, I can get a credit for 30% of their cost. [LMF says: I’m not sure if our new EnergyStar air-conditioner qualifies me! But I hope so!]

6. I Might Buy a Hybrid Car Buying a hybrid could get you a credit of $250 to $3,400, depending on which car you buy. If it’s a plug-in hybrid, your credit could be as high as $7,500. [LMF says: !!!] 7. There’s Another Car Buying Incentive! If you buy any new car, you can deduct your state and local taxes from your tax return. (Unless your new car costs more than $50,000, fancy pants.)

8. Oh Yeah, And If you trade in a gas-guzzler for something that’s energy efficient, you could get a tax credit up to $4,500.

9. I Take Public Transit You can now have up to $230 taken out of your monthly paycheck (to pay for your subway card or your bus pass—whatever) pre-tax. That’s a BIG deal for commuters!

10. There’s a Kick-Ass First-Time Home Buyer Credit OK, I personally don’t qualify for this one because I already own a home, but if I was buying my first new home, I could get an $8,500 credit—and you can, too!

Anyone going to be able to take advantage of anything from the Stimulus Package? Is anyone else a little disappointed? Or still a little confused? From the way they were talking, I thought money was going to fall from the clouds!

To make up for all of the slightly disappointing news above, here are three links to make you laugh: